Every real estate buyer is aware of that not having sufficient cash in hand to close the deal is the biggest challenge, which latest economic environment has brought on the top of the table. Even if, the economy is stable, then all the real estate investors are not with bigger pockets who can sign the deal in no time.
Finance has become the part and parcel of the real estate industry that won’t let the deal fall through. The best route to obtain finance bypass private money loans as traditional loans are less reliable to provide funds on time. Take a look at the reasons that makes sealing the deal with private money more favorable:
- Quick approval and funding
The good deals won’t wait for the buyers to get the funds. As opposed to traditional resources, the private loans get approved in a meeting and funded in a couple of days or hours. This way the deal can never be gotten out of the hand due to unavailability of the capital.
- Less collateral requirement
The pile of documents to collect, submit and sign, for the loan request is a tedious process in which no real estate buyer wants to get entangled. The private money lenders in Los Angeles perfectly understands the value of time in real estate deals, so they just require a promissory note and a deed of trust to sign before providing the funds.
- Adjustable terms and conditions
The terms and conditions of private loans are not as strict as conventional loans as they are decided and finalized during a one-to-one meeting between a private money lender and the buyer. Tailoring the loan conditions according to buyer needs help in fixing and flipping the property a lot.
- Local lending
The banks are doing business at the global level and less connected with the customers. For the banks, passing the loan is providing a check on the account number, which is not the case with private money lenders. The lenders generally fund the local projects and have an interest in the success of the property, which buyers want to buy leveraging the capital provided.
- Maintain transparency
Although all different types of fees that bank charges are always mentioned in the documents that buyers sign, but they are hidden in the plain sight. Once, the funds are provided and buyers start making repayment, they will come to know about all those charges. The private money lenders keep sheer transparency about the interest rates, costs and fees to be added with loan principal amount during repayment.
- Creditworthiness doesn’t matter
As earlier mentioned, the private money lenders require the deed of trust to be signed by the buyers wherein the loan is secured by property collateral, so the lenders have no interest in the buyer’s income, credit score or previous real estate trading record. No minimum credit score is needed or asked during the private loan approval.
- Beat the competition
The immediate funding, flexible terms and conditions, fewer documents requirement and the free consulting service of private money lender enable the buyers to not lose the lucrative deal in hand and reap the advantages in abundance leaving the competition in the dust.
Finance is the biggest headache that brings a lot of hassles in the real estate deals, but private loans make it plain-sailing. In spite of worrying about the funds, the buyers would have a lot of things in control, which makes the next deal a reality in no time. So, get set to earn dollars with easy-peasy private money loans.